University of Michigan graduate Kellyann Wargo thought she had found the perfect downtown housing when she moved into the new Ann Arbor City Apartments in December 2013.

But Wargo and her boyfriend, Drew Zader, are frustrated with the ongoing construction at the building and that some of the apartment’s promised amenities have not yet been completed.

Ann Arbor City Apartments is a work in progress, eight months after tenants started moving into the 155-unit building, located on the southeast corner of South First and West Washington streets.

Construction crews continue to work on finishing the building’s exterior, paving an alleyway to connect Washington and Liberty streets and completing the shared amenity spaces, such as an outdoor “Zen garden” and a rooftop deck.

Jonathan Holtzman, CEO of Farmington Hills-based developer Village Green, anticipates the entire building, which is 100 percent occupied, will be completed in the next 30 to 45 days. He said some aspects of construction took longer than originally expected and Village Green would like to meet individually with residents of the building to discuss their concerns.

Holtzman cited weather and business related issues for delaying construction, and he called Ann Arbor City Apartments a “complicated development” that involved a public-private partnership. There was also a mid-construction change in the building’s contractor, when Village Green Construction took over from O’Neal Construction.

“Village Green and O’Neal have a business agreement to separate and that’s our only comment,” Holtzman said.

O’Neal Construction Project Manager Will Gordon said the company has no comment regarding the Ann Arbor City Apartments project.

Village Green developed Ann Arbor City Apartments on the site of a former city-owned parking lot. The development — which is targeted toward professional renters instead of University of Michigan students — broke ground in January 2012 and welcomed its first tenants in December 2013.

As part of the project, Village Green constructed a three-story, 251-space parking garage on the bottom of the building that the city of Ann Arbor purchased and Ann Arbor’s Downtown Development Authority manages. The general public and tenants of the apartments share the garage.

“Over the next 30 to 45 days as the building is completed and all the things that have taken longer (to finish) turn out the way we think it will turn out, I think everybody is going to be very proud when we have the grand opening,” he said.

The building’s grand opening is scheduled for the first week of October.

Wargo and some other tenants in the building are frustrated with construction noises, minor maintenance issues and not having outdoor amenities during the summer months.

Wargo signed a 15-month lease and said she will not be renewing it.

The rooftop lounge and Zen garden areas of the Ann Arbor City Apartments are visible in this bird's eye view on the building.Village Green

“My friends ask if they should move here and I say no, but it’s also hard to say because things aren’t done yet (in the building). When it’s done, maybe it will be nice. Things we were told would be here aren’t even here,” she said.

Village Green markets the Ann Arbor City Apartments as “Ann Arbor’s only brand new, luxury apartments.”

Monthly rental rates at the building range between $1,425 for a 601-square-foot studio unit to $2,855 for a 1,138-square-foot two-bedroom, two-bath unit. Utilities are not included in the rental rates.

Ann Arbor City Apartment’s marketing website boasts of the building’s indoor clubroom with flat screen televisions and a full-service bar, and an outdoor sky park with built-in cabanas, grilling stations, an outdoor shower and a gas firepit.

As of this past week, the outdoor rooftop deck was covered in gravel with construction equipment. The Zen garden and yoga patio area was also covered in gravel, and two construction crew members were working on the site. The indoor shared amenity spaces are completed.

“We were promised a sky lounge with outdoor lounge chairs and barbecue pits and a Zen garden and yoga patio, but I have literally been looking out onto the Zen garden of construction,” said Ann Arbor City Apartments resident Shawn Arian. “It’s been a construction garden of rubble and dust and debris and trash for the past eight months I’ve been living here.”

Wargo said she would like having access to outdoor green space since she doesn’t have a balcony in her unit.

Ann Arbor City Apartments tenant Stuart Wagner said the building’s amenities played a “huge role” in why he decided to move into the building. Wagner plans to move out this month.

“I thought (the shared amenities) would be an opportunity to meet people. Having a meeting space upstairs, having an outside area where we could grill — those were huge pluses,” Wagner said.

Some residents aren’t as bothered by not having the shared amenity spaces. Ann Arbor City Apartments tenant Rishi Moudgil said he’s pleased with the layout of his unit and the building’s location.

“Obviously, not having a lot of the amenities that you pay for is frustrating,” Moudgil said. “I think also, they did really sell the amenities as a key reason to move into the place… .My personal preference, I didn’t choose the place because of all those things. It doesn’t affect me as much.”

Holtzman said that although Village Green is pleased with the quality and the design of the building’s units, the company is disappointed that the Zen garden, the rooftop deck and the street-level sidewalk areas have taken longer to complete than anticipated.

Wargo pointed out that other aspects of the building’s interior feel unfinished, such as the stickers next to the elevator buttons and the apartment numbers that are peeling off the wall.

Arian agreed: “There is unfinished stuff that is not really sightly, especially since you’re paying a premium to live in a luxury downtown apartment.”

Ann Arbor City Apartments resident Kenny Fellows said he understands some tenants’ frustrations, but he’s not bothered by the ongoing construction.

“I’m not really one to be bothered that easily,” Fellows said. “I hear construction in the morning, but I’m not one to get upset about stuff like that.”

Fellows said he’s enjoyed the nearby amenities in downtown Ann Arbor, such as the Mark’s Carts food carts and Bill’s Beer Garden, which are both located right outside the Ann Arbor City Apartments.

Arian said the management staff at the building has been responsive to tenant requests, but management cannot do anything about the ongoing construction.

He said he’s had conversations with management about getting compensated for not having certain amenities during his first eight months living in the building.

Holtzman, of Village Green, said customer service is very important for the 95-year-old company. He said Village Green would like to meet face-to-face with its customers to address any issues they have about their housing situations.

“I hope to correct each one of the renters that is unhappy. I hope to correct that in a very respectful manner, which is what they expect of us,” he said.

Holtzman said Ann Arbor City Apartments is 100 percent occupied and was fully leased before the first tenants started moving in. He said there is a long waiting list to get a unit in the building. He believes the city of Ann Arbor and developers similar to Village Green should work together to build more rental apartment buildings in downtown that are targeted toward professional renters instead of students.

Although Holtzman is happy with the quality and design of the units at Ann Arbor City Apartments, he said he’s not pleased with the building’s exterior color scheme. Village Green is considering submitting a request to the city to change the colors of the building.

Lizzy Alfs is a business reporter for The Ann Arbor News. Reach her at 734-255-2638, email her lizzyalfs@mlive.com or follow her on Twitter.